Ether Outpaces Bitcoin as Crypto Short Squeeze Wipes Out Billions in Bearish Bets

Crypto markets delivered their strongest rally in months this week, fueled by a mix of Treasury liquidity moves, regulatory developments, and a massive wave of short liquidations totaling more than $4 billion.

Ether Leads the Charge While Bitcoin Crosses Key Level

Bitcoin broke above $70,000 for the first time since June, but Ether stole the spotlight, briefly climbing nearly 19% in a single day compared to Bitcoin’s 5-6% move. Over the week, Ether gained roughly 18% versus Bitcoin’s 8.8%.

The scale of the squeeze proved brutal for short sellers, one Hyperliquid trader lost $24 million on an Ether short in about 12 seconds, despite having profited $49 million from prior short bets.

Analysts Divided on Rally’s Staying Power

Bitfinex analysts noted that combined ETF demand and limited selling pressure give this rally a longer potential runway compared to typical squeeze-driven moves, though profit-taking remains a risk if large amounts of Bitcoin move to exchanges.

Washington Pushes Ahead on Crypto Rules

Regulators advanced multiple policy fronts this week, with the CFTC and SEC preparing crypto frameworks independent of the stalled Clarity Act. Meanwhile, stablecoins gained further traction in mainstream payments, and corporate crypto treasuries, including Strategy and BitMine, saw improved balance sheets as prices climbed.